Homebuilder sentiment posts a record jump in June, signaling a housing-market rebound from the coronavirus pandemic

• Homebuilder sentiment surged a record 21 points in June to 58, according to the National Association of Homebuilders/Wells Fargo Housing Market Index released Tuesday.
• Any reading greater than 50 indicates a positive market.
• "As the nation reopens, housing is well-positioned to lead the economy forward," said NAHB Chairman Dean Mon in a statement. "Inventory is tight, mortgage applications are increasing, interest rates are low and confidence is rising."

Homebuilders are feeling good about the state of the housing market again, signaling that a housing rebound is underway.

Homebuilder sentiment posted a record 21-point jump to 58 in June, the National Association of Homebuilders/ Wells Fargo Housing Market Index said Tuesday. In May, the index advanced slightly to 37 points following a record 42-point plunge in April to 30 points.

Any index reading greater than 50 indicates a positive market, according to the NAHB.

"As the nation reopens, housing is well-positioned to lead the economy forward," said NAHB Chairman Dean Mon in a statement. "Inventory is tight, mortgage applications are increasing, interest rates are low and confidence is rising."

The report comes just after US retail sales surged a record 17.7% in May, suggesting a faster-than-expected rebound from the depths of the coronavirus pandemic may be underway. The housing market has also shown signs of recovery as the US economy reopens, fueled by mortgage rates sitting near all-time lows, encouraging potential buyers to flock back to the market.

Mortgage applications for new home purchases jumped 10.9% in May compared to a year ago, and 26% from the previous month, according to the Mortgage Bankers Association.

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All components of the housing market index gained in June, according to the NAHB. The current sales index jumped 21 points to 63, while the index of sales expectations in the next six months rose 22 points to 68. The measure of prospective buyers gained 22 points to 43, the report showed.

"Builders report increasing demand for families seeking single-family homes in inner and outer suburbs that feature lower density neighborhoods." said NAHB Chief Economist Robert Dietz in a statement. "At the same time, elevated unemployment and the risk of new, local virus outbreaks remain a risk to the housing market."